RBL Bank stock down 63% from 52-week high, good time to buy?

Shares of RBL Bank have tumbled 63 per cent from their 52-week high amid a highly volatile market. RBL Bank stock, which hit a 52-week high of Rs 221.20 on November 10, 2021 is currently trading at Rs 81.10, translating into a decline of 63.31 per cent during the period. The private sector lender's consolidated profit after tax more than doubled to Rs 164.77 crore in the March quarter, mainly due to a low base in the year-ago period.

RBL Bank reported a net profit of Rs 197.83 crore on a standalone basis in the January-March quarter as against Rs 75.34 crore in the year-ago period.

Net interest income climbed 25 per cent to Rs 1,131 crore despite a tepid 2 per cent advances growth while the net interest margin (NIM) widened sharply to 5.04 per cent.

In the last fiscal, the lender reported a loss of Rs 74.74 crore against a net profit of Rs 507.78 crore in 2020-21.

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Shares of RBL Bank were trading 1 per cent lower in the current trading session. The stock fell 1.03 per cent at Rs 81.35 against the previous close of Rs 82.20 on BSE. RBL Bank is trading lower than 5-day, 20-day, 50-day, 100-day and 200-day moving averages

The stock has fallen 62 per cent in a year and lost 36 per cent since the beginning of this year.

Total 5.26 lakh shares of the firm changed hands amounting to a turnover of Rs 4.28 crore on BSE. The market cap of the lender stood at Rs 4,877 crore on BSE.

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The stock hit a 52-week low of Rs 74.15 on June 20, 2022.

Here's a look at what analysts said on the outlook of the stock.

Tirthankar Das, Head of Technical Research, Ashika

"The stock price remains in downtrend forming consecutive lower low formation indicating trends remain in favour of the bears. On the oscillator front, RSI is in a strong bearish zone in daily and weekly timeframes. The MACD is way below the zero line, the daily ADX (35) is on a rising trend with -DMI well above the +DMI though converging indicating negative bias. The KST and TSI indicators show a bearish setup. Amid such negative setup, oscillators are in extreme oversold reading and recent low of Rs 74 if sustains then might promote a pullback. However, no signs of price exhaustion can be seen yet and it would be wiser to follow the trend rather than hunting bottom. Meanwhile buying on strength seems more natural only above Rs 92."

AR Ramachandran, Co-founder & Trainer, Tips2Trades

"Despite a new MD & CEO taking over recently, past performance due to poor revenue growth and negative profits along with a rising interest rate scenario has led to RBL Bank at all-time lows in recent times. Till the stock doesn't stabilise above Rs 99, investors should not buy the stock at current levels. Next support will be at Rs 56."

Manoj Dalmia, founder and director, Proficient Equities

"RBL Bank is near its 52-week low. R. Subramaniakumar, a veteran public sector banker has moved as the MD & CEO of private sector lender. Analysts, however, are not gushing over the Reserve Bank of India's (RBI) choice to head RBL. They point to earlier instances of former public sector bankers being appointed heads of financial institutions that have a track record of poor asset quality and corporate governance issues. This has triggered a negative sentiment around the stock. The stock is currently under pressure and might fall further till Rs 60 level. Current call is sell as per the price levels."